Warren Buffett (Berkshire Hathaway) Stock Portfolio – Update 2012 Q3

Warren Buffett’s Berkshire Hathaway stock holdings for Q3 2012 was filed on 11/14/2012. There was even more activity during the third quarter than there was in the second quarter, with new holdings in Deere & Co, Media General, Precision Castparts, and Wabco Holdings. Increases were made to Bank of New York Mellon, DaVita Inc,Coca Cola, DIRECTV, General Motors, IBM, National Oilwell Varco, Viacom, and Wells Fargo. Holdings of General Electric, Johnson & Johnson, Kraft, Lee Enterprises, Proctor & Gamble, and US Bancorp were reduced. Dollar General, Kraft, Proctor & Gamble, Verisk Analytics, US Bancorp, UPS, Verisk Analytics, and VISA were reduced this quarter. Stakes in CVS Caremark, Dollar General, and Ingersoll-Rand were sold off. The filing is for the quarter ended of 9/30/2012:

Berkshire’s New Stock Holdings:

– A new stake was initiated in the maker of agricultural and construction equipment & parts.
– A total of 3,978,767 shares of Deere & Company were purchased in the third quarter of 2012, and was worth approximately $328 million ($328,129,000) as of 9/30/2012.

– A new stake in the newspaper company was completed through World Media Enterprises (Berkshire’s subsidiary) on 6/25/2012. The deal involved 63 daily & weekly newspapers, cash, a loan agreement, and a 19.9% stake in Media General. See Warren Buffett’s Newspaper Purchases for details.
– A total of 4,646,220 Class A shares of Media General were acquired in the deal during the third of 2012, and was worth approximately $24 million ($24,067,000) as of 9/30/2012.

– A new stake was initiated in metal components & products manufacturer.
– A total of 1,248,901 shares of Precision Castparts were purchased during the quarter, and was worth approximately $204 million ($203,996,000) as of 9/30/2012.

– A new stake was initiated in the manufacturer of electronic, mechanical, and mechatronic components for the automotive industry (truck, trailer, bus, car).
– A total of 1,599,064 shares were purchased in the third quarter, and was worth approximately $92 million ($92,235,000) as of 9/30/2012.

Berkshire’s Stock Additions:

– Berkshire again increased its stake in the bank by adding 914,400 shares (4.88%) up from 18,719,515, bringing the total to 19,633,915 shares. On 9/30/2012, the company’s stake in the bank had a market value of approximately $444 million ($444,119,000).
– During the previous quarter (Q2 2012) it had doubled its shares adding 13,112,049 (233.8%) to a total of 18,719,515 shares.
– During the first quarter (Q1 2012) it had doubled its shares to 3,813,551 (213%) from 1,793,915, to a total of 5,607,466 shares. The bank was a new holding in Q3 2010.

– Berkshire did not add to its stake in Coca-Cola Co.However, the number of shares increased by 200,000,000 (100%) up from 200,000,000, bringing the total to 400,000,000 shares. This was a result of Coca-Cola’s stock split announced in April this year, and was effective August 10, 2012. On 9/30/2012, the company’s stake in Coca-Cola had a market value of approximately $15 billion ($15,172,000,000).

– Berkshire significantly increased its stake again in DaVita by adding 897,569 shares (9.65%) up from 9,300,000 shares, bringing the total to 10,197,569 shares as of 9/30/2012. The company’s stake in the dialysis services company had a market value of approximately $1.05 billion ($1,056,570,000) for Q3. According to SEC filings, Berkshire has been adding shares almost on a weekly basis after the second quarter up until the third quarter filing. The company has also continued to acquire shares of DaVita since the Q3 filing, adding 2,095,484 more shares (20.5%), bringing its total to 12,293,053 shares as of 11/26/2012. On 11/26/2012, the company’s stake in DVA had a market value of approximately $1.35 billion ($1,352,235,830).
– During the previous quarter (Q2 2012) Berkshire added 3,300,000 shares (55%), from 6,000,000 to a total of 9,300,000 shares.
– During Q1 2012 Berkshire more than doubled its stake by adding 3,315,500 shares (124%), from its original 2,684,500 to a total of 6,000,000 shares.
– DaVita Inc, was a new holding in Q4 2011.

– Berkshire increased its holdings of DIRECTV for the fourth consecutive quarter, adding 1,134,900 shares (3.99%) up from 28,420,700 shares, bringing its total to 29,555,600 shares. On 9/30/2012, the total value of Berkshire’s holdings in the digital television provider was approximately $1.55 billion ($1,549,896,000).
– During the previous quarter (Q2 2012) 5,421,100 shares were added (23.6%) up from 22,999,600 shares to 28,420,700 shares.
– In the first quarter (Q1 2012), Berkshire added 2,651,200 shares (13%) from 20,348,400 shares, bringing its Q1 2012 total to 22,999,600 shares. During Q4 2011 Berkshire quadrupled its stake by adding 16,099,000 shares (378.85%) up from its original 4,249,400 shares, with a Q4 2011 total of 20,348,400 shares. DTV was a new holding in Q3 2011.

– Berkshire increased its stake in the Detroit based global automotive giant, adding 5,000,000 shares (50%) up from 10,000,000 shares, bringing its total to 15,000,000 shares. On 9/30/2012, the total value of Berkshire’s holding in GM was approximately $113 million ($113,750,000).
– A new stake was initiated GM during the first quarter (Q1 2012).

– Buffett increased Berkshire’s holdings of International Business Machines Corporation for the fourth consecutive quarter, adding 872,500 shares (1.3%) up from 66,645,396 shares, bringing its total to 67,517,896 shares. On 9/30/2012, the total value of Berkshire’s holdings in IBM was approximately $14 billion ($14,006,587,000).
– In Q2 2012 Buffett added shares for the third consecutive quarter with 2,237,596 more shares (3.5%) up from 64,395,700 shares.
– During Q1 2012 Berkshire added 489,769 shares (1%), from 63,905,931 shares, bringing its total to 64,395,700 shares.
– Buffett increased Berkshire’s holdings of IBM in Q4 2011, to an approximate 5.5% ownership of the company, approximately $12 billion ($11,751,023,000) stake by 12/31/2011.

– Berkshire nearly doubled its stake in National Oilwell Varco by adding 1,345,600 shares (47.36%) up from 2,841,200, bringing the total to 4,186,800 shares. On 9/30/2012, the company’s stake in the maker of equipment & components used in oil & gas industry, had a market value of approximately $335 million ($335,405,000).
– The holding was a new stake in the previous quarter (Q2 2012).

– Berkshire again increased its holdings the entertainment giant for the second consecutive quarter, adding 794,000shares (11.65%) up from 6,813,200 shares, bringing its total to 7,607,200 shares. On 9/30/2012, the total value of Berkshire’s holdings in Viacom was approximately $407 million ($407,670,000).
– During the previous quarter (Q2 2012) Berkshire more than tripled its stake in the entertainment company by adding 5,221,530 shares (328.1%) up from 1,591,670 shares, bringing the total to 6,813,200 shares.
– Viacom was a new holding in Q1 2012.

– Buffett increased Berkshire’s holding in the bank for the sixth consecutive quarter, and the 11th time in 4 years. During the third quarter another 11,504,300 shares (2.79%) were purchased, bringing the total number of shares from 411,045,245 to 422,549,545 shares. Berkshire’s stake in Wells Fargo had a market value of approximately $14.6 billion ($14,590,638,000).
– During the previous quarter (Q2 2012) Buffett increased Berkshire’s holding by another 16,710,317 shares (4.2%) from 394,334,928 to 411,045,245 shares.
– During the first quarter (Q1 2012) Berkshire’s stake in WFC increased by 10,631,300 shares (3%) from 383,703,628 shares to a total of 394,334,928 shares.
– Buffett had previously added to his favorite bank during Q4 2011 (22,333,820 shares, 6.18%), Q3 0211 (9,042,200 shares, 2.56%), the Q2 2011 (9,703,683 shares, 2.83%), Q4 2010 (6,215,080 shares, 1.8%), as well as during the 3rd quarter of 2010, and 3 out of 4 quarters in 2009.

Berkshire’s Stock Reductions:

– Berkshire significantly reduced its holdings in the conglomerate by 4,419,725 shares (-88.2%), bringing its position lower from 5,008,625 shares to a total of just 588,900 shares. On 9/30/2012 the company’s stake in GE had a market value of approximately $13 million ($13,374,000).

– Berkshire again reduced its long time holdings in J&J significantly by 9,841,100 shares (-95.2%), down from 10,333,128 shares, bringing the total to just 492,028 shares. On 9/30/2012, the company’s holdings in the diversified healthcare giant was worth approximately $34 million ($33,905,000).
– During the previous quarter (Q2 2012) Berkshire reduced its stake by 18,684,999 shares (-64.4%), down from 29,018,127 shares, bringing the total to 10,333,128 shares.

– Contrary to other reports, Berkshire did not sell or reduce its holdings in the new Kraft Foods Group or Mondelez International Inc [MDLZ], as the spin-off did not yet take place during the reporting period. However, any change in its position should show up in the Q4 filing in a few months.
– During the previous quarter (Q2 2012) Berkshire reduced its holdings in Kraft (for the 5th consecutive quarter), selling 19,190,775 shares (-24.6%), reducing its holding from 78,017,165 shares, bringing the total to 58,826,390 shares. In Q1 2012 (by 9,017,548 shares, -10%), Q4 2011 (by 2,711,995 shares, -3.02%), Q3 2011 (by 9,720,916 shares, -9.77%), and Q2 2011 (by 5,746,960 shares, -5.46%).

– Berkshire significantly reduced its holdings in the newspaper company by 2,095,102 shares (-64.9%) from 3,225,822 shares, bringing its total to 1,130,720 shares. On 9/30/2012, the total value of Berkshire’s holdings in Lee was approximately $1.6 million ( $1,673,000).
– During the previous quarter (Q2 2012) Berkshire nearly doubled its holdings and added 1,570,697 shares (94.9%) up from 1,655,125 shares, bringing its total to 3,225,822 shares.
– On 6/5/2012, Berkshire disclosed a 3% stake in the company in a SEC amendment to the original Q1 2012 filing . Berkshire had originally requested that confidential treatment be given for its stock purchase of Lee, which was rejected by the SEC on 5/25/2012.
– The stake in Lee Enterprises is part of Buffett’s string of newspaper acquisitions made this year.

– Berkshire again reduced its holdings in P&G for the third consecutive quarter by 6,809,125 (-11.4%), down from 59,602,203 shares, bringing the total to 52,793,078 shares. On 9/30/2012, the company’s holdings in the consumer products giant was still worth approximately $3.6 billion ($3,661,728,000).
– During the previous quarter (Q2 2012) Berkshire cut its stake by 13,651,933 (-18.6%), down from 73,254,136 shares, bringing the total to 59,602,203 shares.
– In Q1 2012 Berkshire had reduced its holdings by 3,511,900 shares (-5%), down from 76,766,036 shares, to a total of 73,254,136 shares.

– Berkshire again reduced its holdings in US Bank slightly for the third consecutive quarter by 4,736,112 shares (-7.17%), down from 66,000,713 shares, bringing the total to 61,264,601 shares. On 9/30/2012, the company’s holdings in the bank was worth approximately $2.1 billion ($2,101,375,000).
– During the previous quarter (Q2 2012) Berkshire reduced its holdings in USB by 3,038,613 shares (-4.4%), down from 69,039,326 shares, bringing the total to 66,000,713 shares.
– During Q1 2012 it reduced its stake by 100 shares (-0.0001%), down from 69,039,426 shares, to a total of 69,039,326 shares.

– Berkshire significantly reduced its holdings in UPS again, this time by 202,500 shares (-77.3%), bringing it down from 261,900 shares to a total of just 59,400 shares. On 9/30/2012 the company’s stake in the delivery company had a market value of approximately $4.2 million (4,251,000).
– During the previous quarter (Q2 2012) Berkshire significantly reduced its holdings by 1,167,300 shares (-81.7%), bringing it down from 1,429,200 shares to a total of 261,900 shares. On 6/30/2012 the company’s stake had a market value of approximately $20.6 million ($20,627,000).

– Berkshire decreased its holdings in Verisk Analytics for the third consecutive quarter by 308,437 (-16.5%) down from 1,871,871 shares, bringing its total to 1,563,434 shares. On 9/30/2012, the market value of the holding was approximately $74 million ($74,435,000).
– During the previous quarter (Q2 2012) Berkshire decreased its holdings by 358,277 (-16.1%) down from 2,230,148 shares, bringing its total to 1,871,871 shares.
– In the first quarter (Q1 2012) its holdings were reduced by 1,214,881 shares (-35%) down from 3,445,029 shares to a total of 2,230,148 shares.

– Berkshire again reduced its holdings in the payment processing company significantly by 524,200 shares (-25.2%) down from 2,079,659 shares, bringing its total to 1,555,459 shares. On 9/30/2012, the market value of the holding was approximately $208 million ($208,867,000).
– During the previous quarter (Q2 2012) Berkshire reduced its stake significantly by 785,349 shares (-27.4%) down from 2,865,008 shares, bringing its total to 2,079,659 shares.

Berkshire’s Stock Sell Offs:

– Berkshire sold its remaining stake in the provider of pharmacy healthcare, elminating 5,301,916 shares.
– During the previous quarter (Q2 2012) Berkshire reduced its holdings by 1,804,584 shares (-25.4%), bringing its position lower from 7,106,500 shares to a total of 5,301,916 shares. On 6/30/2012 the company’s stake in CVS had a market value of approximately $248 million ($247,759,000).
– CVS was a new holding in Q3 2011.

– Berkshire sold off its holdings in the discount retailer, selling 3,320,885 shares.
– During the previous quarter (Q2 2012) Berkshire reduced its holdings by 316,279 shares (-8.7%), bringing its position lower from 3,637,164 shares to a total of 3,320,885 shares. On 6/30/2012 the company’s stake in Dollar General had a market value of approximately $180 million ($180,623,000).
– During Q1 2012 Berkshire sold 860,083 shares (-19%), bringing its stake down from 4,497,247 shares to 3,637,164 shares.
– Dollar General was a new stake in Q2 2011.

– Berkshire eliminated its holdings in the climate control and security products manufacturer, selling its remaining 20,400 shares
– During the previous quarter (Q2 2012) Berkshire significantly decreased its holdings by 615,600 shares (-96.8%) down from 636,000 shares, bringing its total to only 20,400 shares. On 6/30/2012, the market value of the holding was $860,000.

Buffett, Combs, Weschler:

– During the second quarter of the year Buffett said Weschler and Combs would oversee about $4 billion each, nearly double the amount Buffett previously said at the company’s annual meeting earlier in the year (May 5 2012). Buffett though, is still responsible for the larger investments (IBM, WFC) and likely the older holdings (IR, GE, JNJ, PG, USB, UPS, VRSK).
– Stake increases in DaVita were likely Ted Weshcler’s, as he previous held the two holdings prior to joining Berkshire.
– CVS, Dollar General, DIRECTV, and Visa were already in the Berkshire portfolio before Weschler, and it is likely Todd Combs had made those stock moves. Some were also previous investments held by Combs as well.
– The size of BK, DE, GM, PCP, WBC, NOV, and VIAB stakes suggest they are either Combs or Weschler’s picks.
– It has been revealed that Weschler was also responsible for putting together the newspaper deals.

– As I mentioned in previous summaries, it is likely that the long time holdings of JNJ, KFT, PG, or USB were not bad investments and does not mean Buffett doesn’t like the businesses anymore (had mentioned in Q2 that he thinks they are strong businesses), but perhaps that they have already appreciated significantly over the years, and likely selling them to provide capital to Combs & Weschler as well has to himself in order to allocate towards better opportunities.

SEC Filing:

The filing does not differentiate between investments that are made by Berkshire Hathaway, its subsidiaries, Todd Combs, Ted Weschler, or Warren Buffett himself (as the chairman and chief executive of the company). Buffett usually makes his stock investments for Berkshire Hathaway through his insurance arms (Berkshire Hathaway Life Insurance Co. of Nebraska, Columbia insurance Co, GEICO, National Indemnity Co, Wesco Financial, etc.).

Full Disclosure:

I am long Berkshire Hathaway [BRK.A /BRK.B], Coca-Cola, DaVita, Wells Fargo, U.S. Bancorp, Kraft, Mondelez. I do not plan on acquiring or selling shares, of any of the companies mentioned within this post, within the next 3 trading days.

Recommended Warren Buffett Related Books:

Although its easy to follow and copy Warren Buffett’s stock moves (buys/sells), we only learn of his actions months after it has been done (SEC filing is always later). We would never know for sure why the move was made or what other reasons were behind it.

Buffett recommends investors who want to learn how he invests, to read books that he specifically endorses and recommends, as well as past Berkshire Hathaway annual reports. The following is list of those few books (I’ve have read these myself and learned to invest like Buffett):

I’m a private investor based out of Canada, who developed the “function-centric investing” paradigm. I am an investor who blogs a little here and there, rather than a blogger who invests a little here and there. I'm passionate about investing and sharing investment knowledge!